Overview
- A political-driven sell-off in US AI and tech stocks after recent Democratic midterm wins sent global markets lower and forced the DAX to give up more than 1,000 intraday points during last week’s rout.
- Stock markets have shown a tentative recovery led by gains in Asia and falling oil prices, which have pushed the DAX back toward its record high reached the prior week.
- Nvidia disclosed an internal probe linked to its founder Jensen Huang after he acknowledged an affair with a woman alleged to be a Chinese spy, and the company’s shares have fallen sharply on concerns about his future leadership.
- Near-term market direction now rests on two events this week: the US October consumer price index that could alter Federal Reserve rate expectations and earnings reports from major DAX firms such as Hannover Rück, Munich Re, Siemens, Infineon and Siemens Energy.
- Sentiment remains fragile because higher US inflation or a worsening of the Nvidia leadership issue could re-ignite broad selling, while the DAX’s lower tech weight and this week’s corporate results will determine whether the rebound holds.